CTL019 and product out-licensing to drive 2017

We expect Oxford BioMedica’s (OXB’s) strategic vision to come to further fruition through 2017/18 with both the potential approval of Novartis’s CTL019 in the US by year end and the possible spin-out/out-licensing of its priority development pipeline assets (OXB-102, OXB-202, and OXB-302). Full year 2016 results revealed robust growth in partnering revenues and 2017 will benefit from lower R&D expenses; we forecast a narrowing of EBITDA loss for the year. The net £17.5m equity fundraising and the Oberland debt facility has extended the current cash runway to 2019, aided by the reduction in near-term R&D; further funding and value may arise from additional manufacturing or IP licensing deals. Our revised valuation for OXB is £208.5m (6.75p/share).